Post on 05-Apr-2018
ANNUAL SHAREHOLDERS’ MEETING 2012
Claus-Dietrich Lahrs (CEO)
Stuttgart, May 3, 2012
Annual Meeting 2012 HUGO BOSS © May 3, 2012 2 / 44
AGENDA
Annual Meeting 2012 HUGO BOSS ©
OPERATIONAL HIGHLIGHTS
2011 FINANCIAL YEAR
OUTLOOK
May 3, 2012 3 / 44
AGENDA
Annual Meeting 2012 HUGO BOSS ©
OPERATIONAL HIGHLIGHTS
2011 FINANCIAL YEAR
OUTLOOK
May 3, 2012 4 / 44
2011 the best year in history for HUGO BOSS
Annual Meeting 2012 HUGO BOSS ©
■ Record financial results
■ Strong momentum across all brands
■ Double-digit sales increases in all regions
■ Profitable retail expansion
■ Successful implementation of Project D.R.I.V.E.
May 3, 2012 5 / 44
Record financial resultsSales and EBITDA before special items(in EUR million)
1,632 1,562
2,059
1,7291,686
3,000
275 272 267
350
469
750
0
500
1,000
1,500
2,000
2,500
3,000
2007 2008 2009 2010 2011 … 2015e
Sales
0
200
400
600
800
1,000
EBITDA
SalesEBITDA before special items
Annual Meeting 2012 HUGO BOSS ©
+19%
+34%
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Number of employees increases due to positive business development
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2,347 2,433 2,152 2,110 2,295
9,1239,593
9,027
9,944
11,004
0
2,000
4,000
6,000
8,000
10,000
12,000
2007 2008 2009 2010 2011
Germanyworldwide
Number of employees at year endGermany* and worldwide
* according to IAS/IFRS
BOSS Selection – New direction receives strong customer support
Annual Meeting 2012 HUGO BOSS ©
Pitti Uomo // Florence, Italy
■ Sales increase by 43% in 2011
■ Distinct brand identity across clothing and sportswear
■ Strengthens luxury brand perception in key growth markets
■ Important halo effect for entire brand portfolio
May 3, 2012 8 / 44
BOSS Selection – Made to Measure underlines unrivalled tailoring competence
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BOSS Black – Momentum in sportswear adds to historical strength in clothing
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BOSS Black – Celebrating 30 years of partnership with McLaren
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HUGO – Impressive presentation at Berlin Fashion Week
Annual Meeting 2012 HUGO BOSS ©
HUGO Fashion Show // Berlin, Germany
May 3, 2012 12 / 44
BOSS Green – Defining premium sportswear
Annual Meeting 2012 HUGO BOSS ©
■ Sales increase 50% in 2011
■ Strongest growing brand within the HUGO BOSS portfolio
■ Successful association with Germany’s top golfer Martin Kaymer
■ High credibility in golf & premium sportswear
May 3, 2012 13 / 44
BOSS Orange – Sharpened brand positioning
Annual Meeting 2012 HUGO BOSS © May 3, 2012 14 / 44
RETAIL – Attractive additions to global network
Annual Meeting 2012 HUGO BOSS ©
BOSS Store // Shenyang, China
Opening: November 2011Net size: 390 m²
BOSS Store // Geneva, Switzerland
Opening: December 2011Net size: 475 m²
BOSS Store // Huizhou Huamao, China
Opening: November 2011Net size: 250 m²
BOSS Store // London Stratford, UK
Opening: September 2011Net size: 458 m²
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RETAIL – Global store network grows by 85 to 622 locations in 2011
Annual Meeting 2012 HUGO BOSS ©
AMERICAS 124 (+11)Openings: 12Closings: 1
Number of own retail stores as of December 31, 2011
EUROPE* 310 (+57)Openings: 69
thereof takeovers: 26Closings: 12
ASIA/PACIFIC 188 (+17)Openings: 33
thereof takeovers: 8Closings: 16
* incl. Middle East / Africa
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Importance of own retail increases steadily
Annual Meeting 2012 HUGO BOSS ©
2015e20102005
Wholesale
Retail
Royalties
40%55%
22%
57%43%
75%
3% 3% 2%
2011
45%
53%
2% …
Sales by distribution channel as a percentage of total sales
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AGENDA
Annual Meeting 2012 HUGO BOSS ©
OPERATIONAL HIGHLIGHTS
2011 FINANCIAL YEAR
OUTLOOK
May 3, 2012 18 / 44
SALES – Growth in all regions and distribution channels
Annual Meeting 2012 HUGO BOSS ©
* incl. Middle East / Africa
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Sales development by region, y-o-yJan. - Dec. 2011
19%
34%
24%
15%
19%
34%
19%
16%
0% 10% 20% 30% 40%
Group
Asia/Pacific
Americas
Europe*
in Eurofx adjusted
Sales development by distribution channel, y-o-y
19%
9%
35%
9%
19%
9%
34%
9%
0% 10% 20% 30% 40%
Group
Royalties
Retail
Wholesale
Jan. - Dec. 2011 in Eurofx adjusted
INCOME STATEMENT – Adjusted EBITDA margin reaches 22.8%
Annual Meeting 2012 HUGO BOSS ©
* Basic and diluted shares
■ Efficiency improvements support 34% growth of EBITDA before special items
■ Gross profit margin up 200 bp to 61.4% due to higher share of own retail and consistent pricing strategy
■ Higher selling & distribution expenses driven by own retail expansion and increased marketing expenditures
in EUR million2011 2010 Change
in %Net sales 2,058.8 1,729.4 19Gross profit 1,264.8 1,027.2 23 in % of sales 61.4 59.4 2.0 pp
Selling and distribution expenses (682.1) (574.4) (19)Administration costs and other operating income and expenses (188.6) (188.8) 0
Operating result (EBIT) 394.1 263.9 49 in % of sales 19.1 15.3 3.8 pp
Financial result (11.7) (14.8) 21
Earnings before taxes 382.4 249.2 53
Income taxes (91.4) (59.9) (53)
Net income 291.0 189.2 54
Attributable to:Equity holders of the parent company 284.5 185.9 53
Earnings per share (EUR)*Preferred share 4.13 2.70 53
EBITDA before special items 469.0 349.8 34 in % of sales 22.8 20.2 2.6 pp
May 3, 2012 20 / 44
NET DEBT – Further net debt reduction despite higher investments
Annual Meeting 2012 HUGO BOSS ©
■ Own retail and infrastructure investments drive growth
Investments (in EUR million)
2010 2011
201
149
■ Strong profit generation offsets working capital and capex increases
Net debt (in EUR million)
2010 2011
56
108
+95 % -26 %
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Dividend* and payout ratio(in EUR and in % of consolidated net income attributable to equity holders of the parent company)
65%85%
64% 75% 70%
0.00
0.50
1.00
1.50
2.00
2.50
3.00
2007 2008 2009 2010 2011**
DIVIDEND – Dividend increase proposed
Annual Meeting 2012 HUGO BOSS ©
* Excl. special dividend **2011: subject to shareholder approval
Proposal in line with dividend policy to pay out between 60% and 80% of consolidated net income
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Preferred shares: 1.46Ordinary shares: 1.45 Pref.: 1.38
Ord.: 1.37
Pref.: 0.97Ord.: 0.96
Pref.: 2.03Ord.: 2.02
Pref.: 2.89Ord.: 2.88
HUGO BOSS shares outperform major indices
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Share class conversion offers many benefits for shareholders
Annual Meeting 2012 HUGO BOSS ©
Benefits Process
■ Simplified share structure
■ Increased liquidity
■ Higher index weighting
■ Improved Corporate Governance standards (“one share – one vote”)
■ Approval from both ordinary and preferred shareholders sought at AGM and separate meeting
■ Mandatory one-to-one conversion
■ Implementation as soon as possible
Red & Black Free Float* Red & Black Free Float*
Ordinary Shares Preferred Shares
HUGO BOSS
42.25% 57.75%88.02% 11.98%
35,860,000 34,540,000
Red & Black Free Float*
Ordinary Shares
HUGO BOSS
70,400,000
65.56% 34.44%
* Includes 1,383,833 treasury shares (528,555 ordinary shares and 855,278 preferred shares)
May 3, 2012 24 / 44
AGENDA
Annual Meeting 2012 HUGO BOSS ©
OPERATIONAL HIGHLIGHTS
2011 FINANCIAL YEAR
OUTLOOK
May 3, 2012 25 / 44
Continued focus on execution of medium-term growth strategy
Annual Meeting 2012 HUGO BOSS ©
STRIVING FOROPERATIONALEXCELLENCE
STRENGTHENING INDIVIDUAL
BRAND IDENTITIES
EXPLOITING GLOBAL GROWTH
OPPORTUNITIES
MAXIMIZING CONSUMER FOCUSTO DRIVE RETAIL
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Investing in our brands: Campaigns
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BOSS Selection Key looks
Annual Meeting 2012 HUGO BOSS © May 3, 2012
BOSS Selection Key looks
Annual Meeting 2012 HUGO BOSS © May 3, 2012
BOSS Selection Key looks
Annual Meeting 2012 HUGO BOSS © May 3, 2012
HUGO – HUGO Key looks
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BOSS Green – Blurring the boundaries between leisure and golf wear
Annual Meeting 2012 HUGO BOSS © May 3, 2012
BOSS Orange Key Looks
Annual Meeting 2012 HUGO BOSS © May 3, 2012
Investing in our brands: High profile fashion events
National Agriculture Exhibition Centre // Beijing, China
Annual Meeting 2012 HUGO BOSS ©
■ May 18, 2012: Fashion Show // Beijing, ChinaBOSS Black MenswearBOSS Black WomenswearBOSS Selection
■ Global marketing campaign in online and offline media
■ Internet live stream using innovative 3D technology
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Investing in our brands: Online communication
Annual Meeting 2012 HUGO BOSS ©
Online
Mobile
Newsletter Blog
Social Media
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Good feedback on womenswear offerings
Annual Meeting 2012 HUGO BOSS ©
■ Growth in 2011 driven by all brands
■ Fall 2012 first collection designed under new organisational set-up
■ Focus on strengthening BOSS Black sportswear offering
■ Positive retailer feedback on new product initiatives
2010 2011
+9%
Womenswear sales development
Share of total sales
89% // Menswear
11% // Womenswear
May 3, 2012 36 / 44
Full pipeline of new store projects
Annual Meeting 2012 HUGO BOSS ©
Flagship Store // Shanghai, China
BOSS Store, Long Island // New York, USA
Flagship Store, Champs Elysées // Paris, France (Renovation)
BOSS Store, Columbus Circle // New York, USA (Renovation)
BOSS Store // Sao Paulo, Brazil
BOSS Store // Taipeh, Taiwan
May 3, 2012 37 / 44
Brand worlds upgrade online shopping experience
Annual Meeting 2012 HUGO BOSS ©
■ Online sales increase by 67% to EUR 33 million in 2011
■ Newly launched monobrand sub-stores elevate consumer experience
■ Further improved usability and navigation
■ Mobile and Swiss online store to launch in first half year 2012
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Important investments into the future growth of our business
Annual Meeting 2012 HUGO BOSS ©
■ New flat-packed goods distribution center to be built near headquarters
■ Caters to future business growth and improves efficiency of key logistical processes
■ Total expenditures amount to around EUR 100 million
■ Start of operation planned for 2014
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Attractive growth opportunities in all regions
Annual Meeting 2012 HUGO BOSS ©
■ Ongoing good brand momentum in key markets
■ Attractive opportunities from own retail expansion and active space management in wholesale
EUROPE*
AMERICAS■ Positive sentiment among key US wholesale partners
■ Brand presentation at retail as good as never before
ASIA/PACIFIC■ Target consumer base continues to grow strongly
■ Impact from increased economic and political uncertainty on consumer confidence difficult to foresee
* incl. Middle East / Africa
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HUGO BOSS starts off 2012 with double-digit growth
Annual Meeting 2012 HUGO BOSS ©
■ First quarter Group sales increase 10% on a currency-adjusted basis
■ Again positive development in all regions and distribution channels
■ Operating result (EBITDA before special items) up 13%
■ First quarter results confirm full year outlook
May 3, 2012 41 / 44
Positive 2012 outlook
Growth of EBITDA before special items slightly stronger than salesEBITDA growth before special items
Annual Meeting 2012 HUGO BOSS ©
2012 Outlook
Sales growth (currency-adjusted) up to 10%
Capex above prior year level
Own retail network around 50 openings
May 3, 2012 42 / 44
slightly higher than sales growth
SUMMARY – HUGO BOSS in good shape for further growth
Annual Meeting 2012 HUGO BOSS ©
■ Tremendous growth opportunities with all brands despite economic uncertainties
■ HUGO BOSS able to outperform difficult retail environments
■ Significant investments in the long-term growth of the business
■ Ongoing business model improvements
May 3, 2012 43 / 44